Icici Bank (IBN) AI Stock Analysis

• Market Cap: $118.06B
• Dividend Yield: 0.7%
• Average Volume (3M): 3.90M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.43
• Revenue Growth: 17.32%
• EPS Growth: 12.99%
• Country: US
• Employees: 187,765
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 3,568,204,300
• 10 Day Avg. Volume: 4,362,957
• 30 Day Avg. Volume: 3,902,119
• PEG Ratio: 5.65
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $37.50
• Price Target Upside: 10.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $38.00 ▲(11.47%Upside)

Icici Bank's strong financial performance and positive earnings call sentiment are key strengths, underpinned by robust profit growth and improved asset quality. Technical analysis supports a bullish outlook, although liquidity challenges reflected in cash flow figures warrant caution. The valuation appears appropriate, balancing the investment appeal.

Positive Factors

Asset Quality

Asset quality improved as the gross NPA ratio improved to 1.67% from the previous 1.96%.

Financial Performance

Record quarterly profit of INR126.3bn, which is a 17.9% increase year-over-year, reflects strong financial performance.

Technological Initiatives

Ongoing digitisation and technology initiatives continue to fuel the bank's growth runway.

Negative Factors

Interest Rate Impact

Management expects some impact on margins as the Reserve Bank of India moves towards a rate-cutting cycle.

Potential Risks

Key risks include potential deterioration in asset quality and weaker earnings due to slower loan growth and net interest margins.

Icici Bank Business Overview & Revenue Model

Company Description

ICICI Bank Limited, together with its subsidiaries, engages in the provision of various banking and financial services to retail and corporate customers in India and internationally. The company operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. It accepts savings, salary, pension, current, trade, escrow, foreign currency, and vostro accounts, as well as time, fixed, recurring, and security deposits services. The company also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, it offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services. Further, the company provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, it offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. The company was founded in 1955 and is headquartered in Mumbai, India.

How the Company Makes Money

ICICI Bank generates revenue primarily through interest income from its lending activities, including personal loans, home loans, vehicle loans, and corporate loans. Fee-based income is another significant revenue stream, derived from services such as transaction processing, wealth management, insurance products, and credit card fees. The bank also earns from treasury operations, which involve trading and investment in government and corporate securities. Key partnerships with financial technology companies enhance its digital banking offerings, contributing to customer acquisition and retention, thereby boosting fee income. Additionally, its subsidiaries in insurance and asset management sectors further diversify its revenue streams.

Icici Bank Financial Statement Overview

Summary

Icici Bank demonstrates strong revenue growth and profitability with high profit margins and efficient leverage management. However, negative cash flow from operations and free cash flow pose liquidity challenges that need to be addressed for sustainable growth.

Income Statement

Icici Bank's income statement reveals strong profitability with a gross profit margin of 68.11% and a net profit margin of 17.32% for the most recent year. The bank has demonstrated impressive revenue growth of 106.33% over the past year, indicating a robust expansion. EBIT and EBITDA margins are healthy at 24.78% and 55.92% respectively. However, the significant increase in total revenue from the previous year might not be sustainable in the long term.

Balance Sheet

The balance sheet of Icici Bank shows a solid equity position with a debt-to-equity ratio of 0.63, reflecting manageable leverage levels. The return on equity stands at 14.77%, indicating efficient use of shareholder funds. The equity ratio is 13.07%, suggesting a stable balance between liabilities and equity. While the bank maintains a healthy leverage position, the relatively low equity ratio in comparison to total assets may pose some risk in economic downturns.

Cash Flow

Icici Bank's cash flow statement highlights a challenging year with a negative operating cash flow, indicating cash outflows exceeding inflows from core operations. The free cash flow has decreased significantly, resulting in a negative free cash flow growth rate. The operating cash flow to net income ratio is negative, raising concerns about cash generation efficiency. Despite these challenges, the bank has managed to maintain financing activities to support operations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.95T	1.43T	1.85T	1.58T	1.61T
Gross Profit	2.01T	1.43T	1.29T	989.30B	964.98B
EBITDA	1.65T	635.04B	488.90B	280.08B	218.35B
Net Income	510.29B	442.56B	340.37B	251.10B	183.84B
Balance Sheet
Total Assets	26.42T	23.64T	19.58T	17.53T	15.74T
Cash, Cash Equivalents and Short-Term Investments	2.14T	1.90T	1.64T	2.14T	1.82T
Total Debt	2.19T	2.01T	1.84T	1.59T	1.40T
Total Liabilities	22.88T	20.94T	17.37T	15.65T	14.07T
Stockholders Equity	3.45T	2.56T	2.14T	1.82T	1.58T
Cash Flow
Free Cash Flow	-800.22B	1.54T	-62.39B	562.51B	1.36T
Operating Cash Flow	-752.52B	1.57T	-37.71B	581.11B	1.38T
Investing Cash Flow	-772.88B	-1.46T	-680.05B	-393.21B	-629.87B
Financing Cash Flow	2.04T	2.47T	247.91B	174.51B	-546.67B

Icici Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBN, the sentiment is Positive. The current price of 34.09 is above the 20-day moving average (MA) of 33.48, above the 50-day MA of 33.57, and above the 200-day MA of 30.99, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 59.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBN.

Icici Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITUB	74 Outperform	$64.16B	8.96	20.65%	6.56%	-6.74%	5.13%
IBN	74 Outperform	$118.06B	18.90	17.47%	0.70%	17.32%	12.99%
HDB	73 Outperform	$174.06B	23.12	13.78%	1.60%	13.13%	0.54%
LYG	72 Outperform	$62.69B	13.05	8.73%	5.93%	-2.65%	-14.84%
BBD	70 Outperform	$27.76B	8.92	10.61%	0.74%	-9.78%	27.43%
BSBR	70 Outperform	$17.71B	15.06	10.89%	6.81%	-3.94%	31.52%
Sector *	58 Neutral	HK$91.35B	5.48	-3.21%	4.86%	7.36%	-55.21%